§ 12-57. Coral Springs firefighters' share plan.

(a)

Establishment. There is hereby established a fund known as the Coral Springs Firefighters' Share Plan, which shall be derived exclusively from monies received from the state and not from any additional taxes levied by the City of Coral Springs. The Coral Springs Firefighters' Share Plan is a defined contribution component of the City of Coral Springs Firefighters' Retirement Plan. The benefits under this defined contribution component shall be in addition to any other benefits provided to firefighters under the City of Coral Springs Firefighters' Retirement Plan and nothing herein shall in any way affect any other benefits that now exist. The other provisions of the City of Coral Springs Firefighters' Retirement Plan shall apply to this defined contribution component, except to the extent otherwise provided in this section 12-57 or to the extent such provisions are inconsistent with the provisions of this section 12-57. Provisions of this section 12-57 shall be construed and administered so as to comply with the applicable provision of Section 401(a) of the Internal Revenue Code. Any provision of this section which is susceptible to more than one construction must be interpreted in favor of the construction most likely to satisfy requirements imposed by Section 401(a) of the Internal Revenue Code. In addition, this defined contribution component is to be treated as a defined contribution plan pursuant to Section 414(k) of the Internal Revenue Code.

(b)

Definitions. The following words and phrases shall, unless otherwise defined or required by the context, for the purpose of the defined contribution component, have the meanings indicated hereafter.

(1)

Account means each qualified participant's defined contribution account which is credited, where applicable, with his/her share of the funds received pursuant to F.S. ch. 175. Available funds shall be invested by the board of trustees and shall be commingled for investment purposes with the other assets of the retirement system. The value of plan assets shall be determined on an annual basis on the valuation date after the end of the applicable plan year and each member's account shall be credited with net investment gains or losses at the same rate as the rest of the plan's assets as determined by the plan's investment managers or the consultant and shall be reduced by such member's share of administrative expenses. Net investment gains or losses shall be credited to share plan accounts (and administrative expenses shall be charged to share plan accounts) after the end of the applicable plan year and the value of each member's account (including net investment gains or losses) shall be clearly identified on annual statements prepared by the board of trustees.

(2)

Administrative expenses shall mean for expenses charged to the share plan as a result of direct administrative expenses of the share plan, such as but not limited to, computer software and its development, installation and maintenance, additional accounting fees attributable to the share plan as determined by the plans auditors and cost of producing and distributing benefit statements and account balances to members, and dividing the total amount of expenses of administering the share plan by the number of shares that have been allocated to qualified participants.

(3)

Funds received pursuant to F.S. ch. 175 means all distributions made pursuant to F.S. ch. 175, including those funds distributed pursuant to F.S. § 175.121(3).

(4)

Qualified participant means all persons employed as full-time, paid firefighters by the city on the effective date of this ordinance and every person who becomes a member thereafter and who is employed on any October 1 and shall include persons in DROP while still employed as firefighters by the city on any October 1.

(5)

Valuation date means October 1.

(c)

Initial funding. Starting effective October 1, 2016, nine hundred twenty-one thousand four hundred seventy-eight dollars ($921,478.00) will be used to fund the share accounts. Each year thereafter, any money received pursuant to F.S. ch. 175 in excess of one million one hundred sixty-nine thousand six hundred eighty-five dollars ($1,169,685.00) will be used to fund the share accounts.

(d)

Creation of individual shares. An individual share account shall be established for each qualified participant.

(e)

Allocation of initial shares. For the initial allocation of shares, the plan will first determine the total number of years of credited service for all qualified participants. A year of credited service, for the purpose of allocating shares, will be one (1) year for each October 1 through October 1, 2016 that the qualified participant has been employed by the City of Coral Springs or the City of Parkland. The sum of nine hundred twenty-one thousand four hundred seventy-eight dollars ($921,478.00) will be divided by the total number of plan years of credited service and the quotient shall be the value of an individual share. Each qualified participant will receive an amount determined by multiplying the value of each individual share by the number of years of credited service for the individual qualified participant. Only those qualified participants who were employed as full-time Coral Springs firefighters for one full year as of October 1, 2016 will receive an allocation of initial shares.

(f)

Additional allocations. Following the initial allocation of shares, all funds received pursuant to F.S. ch. 175 shares will be allocated to qualified participants annually, if funds in excess of one million one hundred sixty-nine thousand six hundred eighty-five dollars ($1,169,685.00) are received. In determining whether funds in excess of one million one hundred sixty-nine thousand six hundred eighty-five dollars ($1,169,685.00) have been received, the plan shall consider all funds received pursuant to F.S. ch. 175 as having been received for the year which the annual allocation is being made. For each annual allocation after the initial allocation, the plan will first determine the number of qualified participants on the October 1 of the year for which the allocation is being made. The plan shall also determine the amount of F.S. ch. 175 money received in excess of one million one hundred sixty-nine thousand six hundred eighty-five dollars ($1,169,685.00). The amount of money received in excess of one million one hundred sixty-nine thousand six hundred eighty-five dollars ($1,169,685.00) will be divided by the total number of qualified participants on the October 1 of the year for which the allocation is being made to determine that years allocation per participant.

(g)

Notwithstanding anything herein to the contrary, the maximum amount of premium tax revenues allocated to any qualified participant's account for any limitation year shall not exceed the limitations set forth in Section 415(c) of the Code (i.e., the lessor of one hundred (100) per cent of total compensation or the dollar limit in effect under Section 415(c)(1)(A) of the Code). Total compensation for this purpose shall include wages within the meaning of Section 3401(a) of the Code for purposes of income tax withholding at the source but determined without regard to any rules that limit the remuneration included in wages based on the nature and location of the employment or the services performed. Total compensation shall also include elective deferrals, elective contributions to a cafeteria plan under Section 125 of the Code or to an eligible deferred compensation plan under Section 457 of the Code, employer pick-up contributions under Section 414(h)(2), and elective contributions that are not includible in the Firefighter's gross income as a qualified transportation fringe under Section 132(f)(4) of the Code. Total compensation shall be subject to the limits contained in Section 401(a)(17) of the Code. The definition of "total compensation" contained in this subsection 9-5-21.5(f) shall only apply to the plan for the purposes of applying the Section 415(c) limitations of the Code.

(i)

Post-severance compensation. Total compensation shall include compensation that is paid after a qualified participant severs employment with the city, provided the compensation is paid by the later of two and one-half (2½) months after severance from employment or the end of the limitation year that includes such date of severance of employment with the city. For this purpose, compensation paid after severance of employment may only be included as compensation if they were paid prior to the firefighter's severance from employment.

For purposes of applying this subsection (i), the following amounts that are paid after a firefighter's severance of employment are included in total compensation:

1.

Regular pay. Compensation for services during the qualified participant's regular working hours, or compensation for services outside of the qualified participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments;

2.

Unused leave payments. Payments for unused accrued bona fide sick, vacation, or other leave, but only if the qualified participant would have been able to use the leave if employment had continued; and

3.

Deferred compensation. Payments received by a qualified participant pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the qualified participant at the same time if the firefighter had continued in employment and only to the extent that the payment is includible in the qualified participant's gross income.

Other post-severance payments (such as severance pay, parachute payments within the meaning of Section 280G(b)(2) of the Code, or post-severance payments under a nonqualified unfunded deferred compensation plan that would not have been paid if the firefighter had continued in employment) are not included as total compensation, even if such amounts are paid within the time period described in this subsection.

(ii)

Continuation payments for disabled qualified participants. Total compensation shall include compensation paid to a qualified participant who is permanently and totally disabled (as defined in Section 22(e)(3) of the Code). For this purpose, compensation shall be the amount the qualified participant would have received for the year if the qualified participant was paid at the rate of compensation paid immediately before becoming permanently and totally disabled (if such compensation is greater than the qualified participant's compensation determined without regard to this subsection (ii), provided contributions made with respect to amounts treated as compensation under this subsection (ii) are non-forfeitable when made.

(iii)

Deemed Section 125 of the Code ("Section 125") amounts are included in total compensation. A reference to elective contributions under a Section 125 cafeteria plan includes any amounts that are not available to a firefighter in cash in lieu of group health coverage because the firefighter is unable to certify that he or she has other health coverage. Such deemed Section 125 compensation will be treated as an amount under Section 125 only if the city does not request or collect information regarding the firefighter's other health coverage as part of the enrollment process for the health plan.

(iv)

Differential pay. Effective for years beginning on and after January 1, 2009, in the case of a qualified participant who receives differential pay from the city:

(1)

Such individual will be treated as a qualified participant of the city making the payments; and

(2)

The differential pay shall be treated as wages and will be included in calculating a qualified participant's total compensation under the plan.

If all qualified participants performing service in the uniformed services are entitled to receive differential pay on reasonably equivalent terms and are eligible to make contributions based on the payments on reasonably equivalent terms, the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)(1)(C) of the Code by reason of any contribution or benefit based on differential pay. However, for purposes of applying this subsection (iv), the provisions of Section 410(b)(3), (4) and (5) shall apply.

For purposes of this subsection (iv), differential pay means any payment which is made by the city to an individual while the individual is performing service in the uniformed services while on active duty for a period of more than thirty (30) days, and represents all or a portion of the wages the individual would have received from the city if the individual were performing services for the city. In applying the provisions of this subsection (iv), uniformed services are services as described in Section 3401(h)(2)(A) of the Code.

(h)

Vesting. The same vesting requirements that apply to the non-defined contribution plan benefits of the retirement plan shall apply to this defined contribution plan component, except to the extent otherwise provided herein.

(i)

Forfeitures.

(1)

Forfeiture for cause. Notwithstanding anything in the retirement plan to the contrary, if a qualified participant in the defined contribution component is convicted of a specified offense set forth in F.S. § 112.3173, as amended from time to time, the provisions of F.S. § 112.3173, shall apply and the qualified participant shall forfeit all rights to receive a benefit from the defined contribution component. For purposes of this paragraph, "convicted" and "specified offense" shall have the meanings given to them in F.S. § 112.3173.

(2)

Non-vested terminated member forfeiture. A qualified participant who is not vested in his/her defined contribution account and who has not applied for disability benefits from the retirement plan, will have his or her account forfeited.

(3)

If a qualified participant separates from service prior to vesting, and is rehired in a position covered by this plan, and receives vesting credit in the defined benefit component for the prior service, he or she will also receive vesting credit in the defined contribution component in the same manner and same amount as that person has received in the defined benefit component, but will not receive the value of the shares that have been forfeited.

(4)

Any qualified participant's defined contribution account which is forfeited shall be allocated annually, as of the next valuation date among the accounts of the qualified participants by determining the amount to be allocated, and dividing it by the total number of qualified participants. The quotient shall be multiplied by the number of shares allocated to each participant, and that amount will be added to each qualified participant's share account.

(j)

Benefits. Benefits shall be provided in accordance with Section 401(a) of the Code. Upon separation of employment by a vested qualified participant, each qualified participant's vested account balance shall be paid to such qualified participant in one lump sum payment, which shall be an eligible rollover distribution as defined in subsection 12-53(f), as soon as administratively practicable following his or her separation from employment. In the event the amount of such lump sum distribution is greater than one thousand dollars ($1,000.00), if the qualified participant does not elect to have such distribution paid directly to an eligible retirement plan specified by such participant or does not elect to receive such distribution directly, then the board of trustees will pay such distribution in a direct rollover to an individual retirement plan designated by the board of trustees for the benefit of such participant. However, if a qualified participant dies prior to the distribution of his or her vested account balance, his or her vested account shall be distributed to his or her beneficiary in one lump sum payment as soon as administratively practicable following such participant's death. Notwithstanding anything herein to the contrary, all distributions from the defined contribution plan component shall satisfy the applicable minimum distribution requirements of Section 401(a)(9) of the Code that apply to the individual accounts (i.e., defined contribution plans).

(k)

Vested terminated members. Vested terminated members will not be eligible for additional shares unless they are reemployed, and will not receive shares for the period of time that they were separated from employment, even if they purchase service credit for defined benefit purposes. If reemployed, vested terminated members will receive share allocations for service after reemployment. Vested terminated members who withdraw their contributions shall not be eligible for any additional shares after the date of withdrawal of their contributions, unless they are reemployed. If reemployed, they will receive share allocations for service after reemployment.

(l)

Administration. The share plan shall be administered by the board of trustees of the Coral Springs Firefighters Retirement Plan. The board of trustees shall be authorized to adopt any rules necessary for the efficient administration of the share accounts. The board of trustees shall adopt rules for the distribution of amounts credited to the share accounts when a person seeks a distribution and the balance of the share account for the previous quarter has not yet been determined. These rules may allow the board of trustees to retain a portion of the share account until the balance of the share account is determined. The rules may also allow the board of trustees to charge a fee for administration of the share accounts.

(m)

Designation of beneficiaries. Each qualified participant may, on a form provided for that purpose which he/she has signed and filed with the approved investment provider designate a choice of one or more persons, named sequentially or jointly, as his/her beneficiary who shall receive the benefits, if any, which may be payable pursuant to this section in the event of the qualified participant's death. The person or persons so named may be different from the person or persons named in the defined benefit component. If no beneficiary is named in this manner, or if no beneficiary designated by the qualified participant survives the qualified participant, the beneficiaries shall be the qualified participant's estate pursuant to rules adopted by the board. Otherwise, a court order determining the beneficiaries of the qualified participant's estate shall be required. A trust may be designated as a beneficiary.

(n)

Miscellaneous provisions.

(1)

Exclusive benefit rule. No part of the assets of this defined contribution plan component shall be used for, or diverted to any purpose whatsoever other than for the exclusive benefit of the qualified participants and beneficiaries thereof, and defraying reasonable expenses of administering this defined contribution plan component. No person shall have any interest in, or right to, any part of the assets of this defined contribution plan component, except as and to the extent expressly provided herein.

(2)

Non-alienation of benefits. The benefits provided by this defined contribution plan component shall not be subject to garnishment, execution, attachment, the operation of bankruptcy or insolvency law, or to any legal process whatsoever, and shall not be assignable; provided, however, deductions in accordance with F.S. § 175.061(7), as such statute now exists or may exist in the future, may be authorized.

(3)

Rollover accounts. No rollovers shall be allowed into this defined contribution plan component.

(Ord. No. 2017-120, § 6, 12-6-17)